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Air Canada closes Aeroplan purchase

Air Canada has completed its acquisition of the Aeroplan loyalty program from Aimia. According to the company, existing Aeroplan points will be honoured on a one-to-one basis when Air Canada's new loyalty program launches in 2020. Air Canada has also closed its previously-announced agreements with TD, CIBC and Visa to participate in the new program. The company has also reached an agreement in principle with American Express to continue its participation in the program after 2020.

"Air Canada is creating an industry-leading loyalty program that aims to provide unmatched flexibility, choice and convenience for customers when it debuts in 2020," said Calin Rovinescu, president and CEO of Air Canada. "With today's purchase of Aeroplan, we are taking a major step forward on this transformational initiative by acquiring one of Canada's most popular loyalty programs. For many Canadians, given Aeroplan's privileged access to Air Canada, it is the next best currency to the Canadian dollar."

The purchase price for the acquisition is $450 million in cash plus $47 million in cash for pre-closing adjustments. Air Canada received payments from TD and CIBC totaling $822 million. TD and CIBC have also made payments to Aimia Canada, now an Air Canada subsidiary, in the amount of $400 million. Visa has also made an unspecified payment to Air Canada.